Shared movies are movies that have been ripped from a dvd or other source and have been put on the internet for others to download. Unless the movie has an open copywrite, than it is illegal. It's basically the movie version of napster, just with much bigger fines and penalties.
In this case, "shared movies" likely pertains to receiving free copies of copyrighted movies. In most cases, possessing/watching a movie that is not an official, paid for, copy is illegal.
